NEW YORK (TheStreet) -- PetSmart (PETM) stock is tumbling Wednesday after the company issued weaker-than-expected guidance for its second quarter and full year. By market open, shares had dropped 6.3% to $58.29.
In its second quarter ending July, the pet supplies retailer expects comparable-store sales growth flat to slightly down and earnings between 92 cents and 96 cents a share. Analysts surveyed by Thomson Reuters estimated profits of $1 a share.
For its full year ending January 2015, the company guides for comparable-store sales relatively flat and earnings of $4.29 to $4.39 a share. Analysts had expected $4.45 a share.
Must Read: Warren Buffett's 25 Favorite StocksSTOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates PETSMART INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation: "We rate PETSMART INC (PETM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins."
- You can view the full analysis from the report here: PETM Ratings Report
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